February 6, 2014
WASHINGTON – Today, Senate Banking Committee Chairman Tim Johnson (D-SD) held a hearing titled “Oversight of Financial Stability and Data Security.”
Below is Chairman Johnson’s statement as prepared for delivery:
“I call this hearing to order. Today, the Committee continues its oversight of the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. There has been good progress since our last hearing, including the completion of the long-awaited “Volcker Rule”. I believe our economy is on much more stable footing in part due to the efforts of our witnesses and their staff.
“However, there is still work to be done, and oversight will continue to be a top priority for this Committee. Some of the pending work includes enhanced capital, leverage, and liquidity rules for the largest banks, a new regulatory framework for non-bank financial companies designated as SIFIs, QRM, and the new derivatives rules. I have asked the witnesses to outline their timeline for completing these and other rules, and to provide information on how each agency’s rules will reduce systemic risk and enhance financial stability.
“To date, the regulators have been thoughtful and responsive. For example, they worked quickly to address a concern raised by community banks that the Volcker Rule unintentionally could have resulted in large, unexpected losses for some. I ask that the agencies continue to monitor the impact of their actions and to coordinate their ongoing work. Agency implementation of Wall Street Reform should also continue to be focused on institutions and activities that pose the greatest systemic risks—final rules should not be one-size-fits-all for banks and insurance companies, nor should they impose unnecessary burdens on community banks and credit unions.
“In recent weeks, American consumers have been victims of large data breaches at national retailers, their personal information exposed to identify theft and fraud. Those responsible must be held accountable, and we must examine what more can be done to better safeguard consumer information going forward. I have asked each agency to detail its coordination with other regulators and law enforcement on data breaches, as well as each agency’s role in the retail payment system.
“Wall Street Reform created an important financial stability watchdog, the FSOC. In its most recent annual report, the FSOC identified security threats in cyberspace as a potential systemic risk. I want to hear what each agency testifying today is doing to mitigate cyber and other data security risks, as well as protect consumer data, at the entities they regulate.”